One month after their historic launch, ETF insiders and crypto proponents alike say Bitcoin spot funds are proving an unequivocal success on key trading measures.
Some 21 trading days in, the funds have raked in about $2.8 billion in total net inflows, data compiled by Bloomberg Intelligence show.
That takes into account the $6.4 billion investors yanked from the Grayscale Bitcoin Trust (ticker GBTC) after it was converted from a trust into an exchange-traded fund.
Atop the leaderboard are BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), taking in around $3.8 billion and $3.1 billion of inflows.
Both breached the $1 billion threshold in five days or less. They’re also the only two funds across the ETF universe to attract more than $3 billion in their first 20 days of trading, according to BI.
Expectations were high for the funds since they allow investors to gain exposure to Bitcoin in traditional brokerage accounts instead of through crypto-native startups.
After initially appearing as a sell-the-news event, the success of the ETFs has helped to push the price of Bitcoin to a the highest in more than two years.
“Any ETF, regardless of the category, garnering over $100 million in assets in a month is deemed a success,” said Jane Edmondson, head of thematic strategy at TMX VettaFi. “We have most of them over that threshold despite the variance in fee structure. Will they all be economically viable over the long-term? That remains to be seen.”
Outside of the two largest new funds, inflows have been less brisk. The Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB), have hauled in around $786 million and $918 million respectively.
The Franklin Bitcoin ETF (EZBC) has attracted only $71 million despite having the lowest fees in the group. The WisdomTree Bitcoin Fund (BTCW) has pulled in $15 million.
Even so, overall “flows into the other ETFs continue to be strong,” wrote Geoffrey Kendrick of Standard Chartered Bank. His year-end prediction for the group is to have at least $50 billion of net inflows, noting that GBTC redemptions will stop at “some point.”